Registered with Property118.comMonday 16th May 2016
Interesting article. I agree and disagree !
To those of us who have had the benefit of having lived longer then we can look back at the amounts we paid for our first property. I have no
doubt that many of us will probably be keeping a watchful eye on our first property (if it still exists) and seeing what it would fetch on the open market today, even if we still own it or not. I can do this with some degree of accuracy as the first property I bought some 35 years ago recently came up for sale again.
It still looks pretty much the same as it did when I lived in it - no extensions or anything major. So it has been maintained and one can assume its not had any other 'added value' put on it.
I bought it for £16,000 back in 1981. I had saved up the deposit and I had a sales job giving me a basic income of £5000 per annum and some commission. I saved with the Halifax and when the house came up for sale I trotted off to ask for a mortgage, I think I had £1000 for the deposit. Could not get a mortgage as the maximum they would lend at that time was 2.5 times income. That would be on my basic salary and they would not make any allowance for commission as it was not 'guaranteed'. So on that basis they would only give me a mortgage of £12.500. A shortfall on the £15 000 I needed. The Halifax manager could see I was bitterly disappointed and quietly slipped me a business card of a private financial advisor. Subsequently I was able to get the mortgage I needed and buy the house.
Fast track to the present : The house was on the market last year for £140,000. So if I wanted to buy it today , I would need to have a bigger deposit in the region of £7000 (5%) and income sufficient to support a mortgage of £133 000. If the multiplier was still maxed at what it was in those past times ie 2.5 times earnings (for a single person as I was) , then I would have to be earning £53 000 basic.
I think a sales man in the same industry as I was back then might get a basic in the region of £25 k these days. So there is no way that I would be able to buy that house in the old regime. I would need to borrow over 5 times my income. So I think houses have gone up quite drastically and I think that this is mainly due to the income multipliers being much greater now.
I stretched myself to the limit financially in order to get my first house. I had to have lodgers in to help me meet the monthly outgoings. I was happy to do this as I was single and enjoying life with few other commitments. There is no way I would be able to do the same thing again with prices as they are now.... Read More
You say you approached your agents when you knew your current tenant was leaving and had been there for 10 years - and you told the Agent to market it at the same rent !
Well surely you knew that rents have increased over the years ? And if not, then any agent worth his salt would have advised you that you are likely to be able to get a higher rent than you are
asking for. Then you seem surprised that people are offering more.......
But now you have gone all greedy and want the most you can wring out of someone...........
I would have asked an agent (perhaps another one) what is a reasonable rent to ask for based on similar properties around the area of yours and then marketed at this.... Read More
I am pleased to say I have found a conveyancing office that actually keeps you updated with the progression, and a named person who will do so on a weekly basis. I checked the reviews for the firm and they were good. I am using them for a property I have just had my offer accepted so we will see whether they keep to their word.
However, the fiasco with the other property I am selling continues - my solicitor not being very forthcoming with my request to see evidence that they had requested the information pack from the Housing Association - when they stated they had done so blah blah. Also, they had sent paperwork to the flat I am selling despite me specifically asking that any paperwork be sent to my home address from then on - this was in person with the legal secretary at their office and she wrote down my address ! So it has just been sitting there in the vacant flat. Needless to say they will not be getting my business again and I will be leaving a scathing review.... Read More
Another piece of legalise that no one ever gets prosecuted for ? I am a gas fitter and have found dozens of properties where gas appliances have been fitted by non qualified people. There are very few prosecutions for this, and if they are it is only because the installation has caused, or can potentially cause death or injury to people. And this is only if it has been brought to the attention of Health and Safety or Gas Safe. We have been arguing for years for the government to bring in legislation to stop 'Joe Public' from being able to purchase gas appliances. In one fell swoop this would prevent appliances being fitted by non qualified people because there would be traceability. But no, this has not happened and probably never will.
The government continually bring out new regulations or tighten up existing ones. In reality they have not got the man power to check that these regulations are being adhered too.
Mind you, I can hardly blame people for avoiding some of the nonsensical legislation they impose on us - the EPC ratings being a prime example. The majority of it is just another way of squeezing more money out of people.... Read More
If it's of any value I am in the position you mention. I sold my house to a investor who intended to put it up for rent to the student market. Just as I was in the process of selling my Mum became terminally ill and I was going to pull out from the sale and I told the buyer this. He said another option would be to rent it off him. As I had a couple of rent-a-room lodgers in anyway I was getting some income. Fair enough, the prospective owner wanted a reasonable rent based on renting out to students - substantially more than he would have received from rental to a family. Anyway, we agreed on a rent and I was quite happy to accept. It helped me not lose the sale and him have an instant tenant ! All I did was sign an AST and just stayed put. With the income from my lodgers I am only having to pay £30 per week in rent whilst I look for another property to purchase with the proceeds of the sale. I don't know about the finer legalities of this - he was a cash buyer, but there did not seem to be any issues and having met each other a few times over a beer or two prior to the sale I think he was confident he could trust me not to be difficult. I've got that kind of face !... Read More